# Diskind Corporation: calculate revenue variance

Question

Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 7,600 units, but its actual level of activity was 7,550 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:

 Fixed element per month Variable element per tenant-day Revenue — \$35.10 Direct labor \$0 \$5.70 Direct materials 0 13.10 Manufacturing overhead 33,000 2.60 Selling and administrative expenses 26,400 4.00 Total expenses \$59,400 \$25.40

Actual results for October:

 Revenue \$266,200 Direct labor \$43,110 Direct materials \$99,990 Manufacturing overhead \$48,000 Selling and administrative expenses \$30,560

The revenue variance in October would be closest to:

a. \$560 F

b. \$1,195 F

c. \$1,195 U

d. \$560 U

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